Ott content services in vietnam an inevitable market trend

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  • 1. OTT Content Services in Vietnam: An Inevitable Market Trend Nowadays fixed and mobile telephone exchange systems have been transforming to IP. The drastic development of broadband technology, fiber optic cable systems to household, quality and internet access speed through 3G, LTE with ubiquitous Wi-Fi development built a sustainable infrastructure which establishes the foundation for revolutionary services such as e-commerce, telemedicine, e-education, IPTV and the recent OTT services. The strongly development of smart phone with cheap price facilitates the endusers in Viet Nam particularly and all over the world to take all advantages from incessant breakthroughs of modern technologies. The OTT services are provided by Internet, mobile broadband network such as: phone call, messages, video content… with better quality and free of charge. Accordingly the end-users get a lot of benefits from those new kind of services and there are more and more people using it for their communication and personal entertainment. The OTT services become popular with the more and more improved quality. However, smart phone with the OTT services also create challenges for telecommunications regulators. It requires the regulators to have appropriate orientation and policies in order to maintain the effectiveness, fairness and sustainability of market. Same as other countries, the OTT services affect much on telecommunications companies in Viet Nam. Free phone calls and messages of the OTT through Wi-Fi, 3G networks make the revenue of domestic Telco decreased (estimated 9-10% total revenue) although data’s revenue is little increased. The OTT service providers supply services based on the infrastructure of Telco without sharing benefit and being regulated on duty such as tax, universal responsibilities… It will make telecommunication market unstable and unfair among Telcos. Because the OTT services are supplied free of charge for customers so the service security and quality of services are not guaranteed. With the benefits of no charge and availability of telecommunications network for internet access, people have an opportunity to comunicate everywhere. In this situation, the adjustment of 1
  • 2. telecommunications policy and regulation are very important for harmonizing the benefits between Telcos, OTT service providers and the end-users. For international calls, messages and video content, it is necessary to regulate the roaming charge, especially data roaming charge. In addition, charging of traditional services (calls and messages) should be considered being adjusted appropriately. For example, the calculation of mobile charge by block 6 sec or 1 sec is suitable or not. Popularity of mobile phone and the OTT services also makes the fixed telephone providers get difficulties in their businesses and the ability of returning the capital. What is the future of fixed telephone network? Is it necessary to maintain fixed network? Which are policies to foster fixed network? Therefore, in order to promote the development of telecommunications market, policy framework should be established in accordance with the development trend of technologies and policies of other countries. Viet Nam Telecommunications Authority (VNTA) would like to share information and experiences of regulators with other countries about the next telecommunication policies such as tarriff regulation, cooperation and benefit distribution between Telcos and the OTT service providers, infrastructure and content service providers, policies of fostering broadband and orientation for development of fixed telephone network… Source: ITU (International Telecommunication Union) 2